Tesla will eliminate the option to purchase its Full Self-Driving (Supervised) software outright, with CEO Elon Musk announcing the company will move to a subscription-only model from February 14.
The change means future Australian Tesla buyers will no longer be able to pay $10,100 upfront for the driver assistance software and will instead need to use the monthly subscription option of $149.
However, it remains unclear what the change means for Australian customers who have already purchased FSD upfront, and the software continues to be available as a one-time purchase option on Tesla Australia’s website.
Musk announced the decision on X without providing detailed reasoning for the shift, marking a significant departure from Tesla’s historical approach to selling the advanced driver assistance suite.
Low adoption drives change
The move comes as Tesla grapples with lower-than-expected adoption rates for the software. In October 2025, chief financial officer Vaibhav Taneja revealed that only 12% of all Tesla customers have paid for Full Self-Driving access.
Tesla introduced the subscription model in 2021 at US$199 per month, later reducing it to US$99 monthly in 2024. However, Musk had previously encouraged customers to pay the upfront fee, claiming the software’s cost would increase as capabilities expanded.
The subscription-only approach could help Tesla boost adoption numbers during what is expected to be a challenging first quarter for the company.
Compensation package implications
The change also aligns with requirements tied to Musk’s $1 trillion compensation package, which includes reaching 10 million active Full Self-Driving subscriptions measured daily over a three-month period before late 2035.
Moving to a subscription-only model with lower upfront costs could accelerate progress toward this target, which represents one of several product goals Musk must achieve to receive his full compensation.
Tesla Australia has not yet clarified how the change will be implemented locally or what it means for existing FSD purchasers.
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